Daido Metal : Announcement of updates to the Mid-Term Plan

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

May 14, 2021

Daido Metal Co., Ltd.

Seigo Hanji

Chairman and Chief Executive Officer (Code) 7245 TSE and NSE 1st Section (For inquiry)

Motoyuki Miyo

Director and Managing Executive Officer Head of Corporate Planning Division

(TEL: [phone])

Announcement of updates to the Mid-Term Plan

Raise Up "Daido Spirit" - Ambitious, Innovative, Challenging -

This is to inform you that we have updated the target in the 2nd Stage (FY2021 to FY2023) of our Mid-Term Plan (FY2018 to FY2023) entitled 'Raise Up "Daido Spirit" -Ambitious, Innovative, Challenging-' announced on May 11, 2018 based on the results of the first three years. Note that visions and four cornerstones of the Mid-Term Plan remain the same as the initial plan.

For further details, please refer to the attached material.

Mid Term Plan

Raise Up "Daido Spirit"

Ambitious, Innovative, Challenging

Review of the First Three Years and Plan for the Latter Three Years

May 14, 2021

© 2021 Daido Metal Co., Ltd.

Table of Contents

1. Objectives of the Mid-Term Plan
2. Review of the First Half Results
3. • Results and summary of the first three years
   • Four cornerstones (Achievements for the first three years)
4. Environmental Awareness and Response Policies
5. • Changes in the business environment and response policies
   • Trends of automotive sales and the composition of power sources
6. Plan for the Latter Half of Three-Year Period
7. • Four cornerstones: Priority items to be implemented
   • Four cornerstones (Targets for the latter half)
   • Quantitative targets for the latter half
   • Financial strategies for the latter half
8. Enhance of Corporate Value with a keen awareness of ESG (Environment, Social, Governance)

© 2021 Daido Metal Co., Ltd.	2

1‐1 Objectives of the Mid-Term Plan Pl

Corporate Philosophy

1. Our Duty: We hold ourselves responsible for the happiness of everyone in our organization and the contributions we make to global society.
2. Our Resolve: We will create a vigorous and open-minded corporate culture through diligent self-discipline and ethical behavior.
3. Our Foundation: We will learn from our markets, respond to our customers' requirements, and surpass our customers' expectations.
4. Our Approach: We will devote ourselves to creation, innovation, and the realization of dreams.
5. Our Objective: We will strive to be the world leader in tribology through constant technical improvement, development, and innovation.

• Following the first three years of the Mid-Term Plan, we will continue to implement measures in line with this Corporate Philosophy in the latter three years of the Plan, aiming to become a company with a global presence and to enhance our corporate value.
• Under our Philosophy #5, we will continue to refine our technologies for the coming era as a world technology leader, based on the core tribology solutions we have cultivated over the years.
• Under our Philosophy #1, we value our employees more than ever, who are the source of power for our development, and make various contributions to the global society.

© 2021 Daido Metal Co., Ltd.	3

1‐2 Objectives of the Mid-Term Plan - Four cornerstones

[Master] [Prepare] [Expand] [Nurture] [Challenge]

Raise Up "Daido Spirit"

～Ambitious, Innovative, Challenging～

Action	Action	Action	Action
line 1	line 2	line 3	line 4

Strengthen current

Creating/fostering new

Enhance

Energetic organization with

business lines further

business lines

management/

animated communication

Action line 1

and motivation

"Trueleader inTribology"

"Define newbusiness areasand

operational control

platform

"Todevelop peopleandorganization

foster them"

"Strengthenvariousplatformand

whocanadaptoneself totherule

reviewoforganizationa

lstructure"

changes intheb

usiness"

Enhance corporate value with focus on ESG

While fully aware of the changes in business environment, such as the shift to EV, a six-yearMid-Term Plan from FY2018 to FY2023 is being promoted under the banner of Four Cornerstones:

1. Strengthen current business lines further (Action line 1)
2. Creating/fostering new business lines (Action line 2)
3. Enhance management/operational control platform (Action line 3)
4. Energetic organization with animated communication and motivation (Action line 4)

© 2021 Daido Metal Co., Ltd.	4